The following information
provides the amount of cost incurred in March for the cost items indicated. During
March, 4,000 units of the firm’s single product were manufactured.

Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,800
Factory depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,500
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,600
Production supervisor’s salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Computer rental expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,100
Maintenance supplies used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600

Required:
a. How much cost would you expect to be incurred for each of these items during April when 5,600 units of the product are planned for production?

b. Calculate the average total cost per unit for the 4,000 units manufactured in March. Explain why this figure would not be useful to a manager interested in predicting the cost of producing 5,600 units in April.